UPDATE: this is a big deal because of the trust that Amazon has. Amazon is a fulfillment house if you think about it. They have awesome systems set up to bill people and ship things out.

Add this to Amazon’s existing S3 and EC2 services and this is significant. I’ll watch the chatter on this over the next day or two and bring you the best info on my link blog.

I wonder how this compares with PayPal and Google’s payment systems? Looks like the API is very well thought out, though. What do you think? If you are looking to build a payment system into your Web apps how would you chose? One thing I’d focus on is the fees. I’m not sure what the others charge but the fee structure is very well laid out on Amazon’s site.